Seychelles

Tourism

Tourism is the most important nongovernment sector of
the
economy. About 15 percent of the formal work force is
directly
employed in tourism, and employment in construction,
banking,
transportation, and other activities is closely tied to
the
tourist industry. Foreign exchange gross earnings from
tourism
were SRe607 million in 1993. The direct contribution of
the
tourism sector to GDP was estimated at 50 percent, and it
provides about 70 percent of total foreign exchange
earnings.
Although difficult to measure, the import content of
tourism
expenditures is high, so net tourism earnings are
significantly
lower.

The tourist industry was born with the completion of
the
international airport in 1971, advancing rapidly to a
level of
77,400 arrivals in 1979. After slackening in the early
1980s,
growth was restored through the introduction of casinos,
vigorous
advertising campaigns, and more competitive pricing. After
a
decline to 90,050 in 1991 because of the Persian Gulf War,
the
number of visitors rose to more than 116,000 in 1993. In
1991
France was the leading source of tourists, followed by
Britain,
Germany, Italy, and South Africa. Europe provided 80
percent of
the total tourists and Africa--mostly South Africa and
Reunion--
most of the remainder. European tourists are considered
the most
lucrative in terms of length of stay and per capita
spending.

Under the 1990-94 development plan, which emphasizes
that the
growth of tourism should not be at the expense of the
environment, the number of beds on the islands of Mahé,
Praslin,
and La Digue is to be limited to 4,000. Increases in total
capacity are to be achieved by developing the outer
islands. To
avoid future threat to the natural attractions of the
islands,
150,000 tourists per year are regarded as the ultimate
ceiling.
The higher cost of accommodations and travel, deficiencies
in
services and maintenance of facilities, and a limited
range of
diversions handicap Seychelles in attracting vacationers
at the
expense of other Indian Ocean tourist destinations.